Diversified technology conglomerate 3M Company (MMM - Free Report) has recently introduced a new portfolio of medical design products to meet the evolving regulatory requirements of the industry. The strategic move is expected to augment its health care segment revenues and strengthen its position as a premier manufacturer of health care products such as adhesives, bonding tapes, adhesive transfer tapes, reclosable fasteners, and label materials.
Over the past few quarters, the health care industry has witnessed a marked shift toward design for reusable medical devices, which in turn has increased the need for sterilization between uses. The entire gamut of 3M Medical Assembly Solutions have been found to be able to withstand the rigors of the sterilization process as outlined by the industry requirements. Moving forward, the company expects to leverage its expertise in the healthcare segment and regulatory compliance to continue making medical devices that are stable through the protocols for cleaning, disinfection and sterilization.
Furthermore, 3M’s global presence and an unrivaled track record as an innovative provider of adhesives and components for health care manufacturers that are used for bonding, fastening, attaching and identification of patients, are positives for the company. Consistent with its long-term strategy of accelerating investments in high-growth programs, 3M strives to deliver sustainable increases in sales, earnings and free cash flow. The company’s ability to convert high R&D spends into up cycle market share gains, pricing power, and margin determines its success over the years.
Formerly known as Minnesota Mining and Manufacturing Company, 3M was founded in 1902 and is currently based in St. Paul, Minnesota. The company operates as a diversified technology enterprise with manufacturing operations across 70 countries. It has more than 35 business units organized into six segments: Consumer and Office; Display and Graphics; Electro and Communications; Healthcare; Industrial and Transportation; and Safety, Security and Protection Services.
3M has been continuously upgrading its product portfolio to fight against stiff competition from other leading players in the industry such as Federal Signal Corp. (FSS - Free Report) and Jardine Strategic Holdings Ltd. , each carrying a Zacks Rank #1 (Strong Buy), and Tyco International Ltd. , which carries a Zacks Rank #2 (Buy). 3M presently has a Zacks Rank #3 (Hold).